Guidance for giving residential property for commercial usage

Type of Property: Private Bungalow.
Intent: Letting out the property to a restaurant for acquiring rent.
Details :
1.) My property comes under R1 Zone.
2.) It was purchased in 1957.
3.) Total Area of the Property is 1459 sq.yd with built up 5500 square yard.
Questions :
1.) If I'm paying commercial property tax, does that mean my property is commercial?
2.) What is change of user from residential to commercial and how to apply for one?
3.) What license do i require as a landlord to give my premise on rent to a restaurant?
4.) Do I have to pay to any government body for using my residential area for commercial activity?
5.) What are the essential documents required for applying for FL 3 licence and any other required license?
6.) Can i give the whole ground floor (3500 sq ft carpet area + 1000 sq ft outside area) for renting purposes to a restaurant?
7.) As per the new alcohol rules, how much parking space do i need to show as per the details given above?
8.) What is the cost of changing user from residential to commercial?
Hoping for a reply soon.
Thank you.
Sk.

1.The tax paid does not defne the type of property it is.
2. To change into commercial you will have to apply in the municipal office in a prescibed format.
3.you can either make a rent agreement that is also called as leave and licensence agreement or a lease agreement depending on the terms and no of years of the deal.
4.y ou canot use it or Lent it out without converting into commercial,so in order to lend it out for commercial purposes first get the residential into commercial
5 details of property ,copy of sale agreement/deed,tax paid receipts your details and I'd proofs ,are needed
6.yes you can rent out the whole area belongs to you for commercial purpose
7.parking space is needed to be provided under the existing law.
8The cost of converting into commercial is mostly to the officers for getting the work done depending on the area,no of years the fee will be different

Restaurants also need to show that they have adequate space for car parking's — a 80 sq feet restaurant needs one car park — for a licence. “
2) in your case if you have 4500 square feet area for restaurant you would need at least 55 car parking space
3) as far as charges for conversion from residential to commercial use is concerned in Mumbai is concerned you have to make inquires with BMC

1. Yes.
2. You have to apply to the municipality for change of user nature.
3. If you are the title holder of the property then you do not require any license to lease the property.
4. The conversion charges are to be paid when the property is converted from residential to commercial, but no charges can be levied for leasing a residential property for commercial use.
5. You may rent out your entire property.
6. Only a local lawyer who is well versed with local laws and rules can tell the conversion charges and the parking space required to be provided.

1. It is clear from your statement that you are paying the taxes applicable at commercial rate hence the property shall come under commercial.
2. It is already assessed as commercial property only hence you need not apply for conversion from residential to commercial. again
3. The tenant who is intending to run a restaurant business shall apply for proper licence from the authorities competent to issue the same. You need not bother about it.
4. For all the commercial activities that are being carried out in the premises, the tenant shall pay them to the authorities.
5. You will be given with the list of documents that are to be submitted for the purpose.
6. It depends on the rental/lease agreement that you are proposing to enter into.
7. This is the responsibility of the liquor vendor and not the owner of the building.
8. Local law involved in this hence it may be clarified from the municipal authorities.

Indian Laws

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